Florida Gov. Ron DeSantis told a group of reporters on August 23 that medical cannabis license holders in the state need to pay more for their license application and renewal fees. But operators in the state say that raising application and renewal fees could spell the end for some struggling businesses.
State officials “should charge these people more,” DeSantis said.
“I mean, these are very valuable licenses,” the governor continued. “I would charge them an arm and a leg. I mean, everybody wants these licenses.”
CBS News Miami reports that whether or not the governor was referring to existing license holders or future license holders remains to be seen.
But Florida’s license and renewal rates already exceed fees seen in other states. That could be because Florida’s licensing system requires operators to cultivate, process and sell marijuana and derivative products without limiting the number of retail locations, and lawyers say this makes the state’s licenses more valuable.
After stepping into his role as governor in January 2019, one of DeSantis’ primary promises is to provide a boost to Florida’s economy.
Gov. DeSantis pushed to repeal Florida’s ban on smokable flower. Voters in Florida passed a constitutional amendment legalizing medical cannabis in 2016, but regulations that ban smokable cannabis were passed by the legislature and signed into law by former Gov. Rick Scott.
Cannabis advocates sued, claiming the ban violated the amendment passed by voters. A state court agreed and declared the rule invalid, but it remained in place as an appeal from Scott’s administration made its way through the courts. However, when Gov. DeSantis took office, he said if the ban was not repealed his administration would abandon the appeal of the court ruling.
The ban on smokable cannabis was officially repealed on March 18, with Gov. Ron DeSantis signing a compromise bill that was passed by legislators. Smokable flower is, unsurprisingly, by far the most popular menu item at Florida’s over 460 medical cannabis dispensaries.
An earlier 2014 allowed low-THC products for certain patients. Then, medical cannabis companies part of an initial group of applicants in 2015 paid over $60,000 in order to be able to sell low-THC cannabis.
Then Florida’s 2016 constitutional amendment established more of what is thought of as a mature medical cannabis market with a variety of approved products.
Florida law requires legislative approval of rules if cost of compliance for those businesses exceeds $200,000 in one year or $1 million over the course of five years.
Jacking up application and renewal fees “would be unfortunate,” Brady Cobb, a lawyer and founder and CEO of Green Sentry told CBS News. “If it happens, it happens,” said Cobb. Cobb added that Florida could make more money by taxing cannabis products or allowing operators to wholesale products to each other and taxing those sales instead.
Black Farmer License Fees Also Too High in Florida
The state charged a higher fee in a recent round of applications for a license set aside in Florida’s 2017 law for a Black cannabis farmer. Under rules laid out by the Department of Health, applicants had to pay a $146,000 fee to compete for the Black farmer license which was over twice the fee from the application process in 2015.
“Black farmers are required to shell out $146,000 merely to apply for a license to grow medical marijuana,” the Miami New Times reports.
Last year, Commissioner of Agriculture Nikki Fried called the high fees for the Black farmer license “discriminatory.”
The department accepted a dozen applications for the Black farmer license, but has not announced the winner of the license. A new round of license applications will launch again after the Black farmer license is issued, but the state hasn’t laid out a timeline. At least 150 applicants are expected to apply.
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